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US markets end lower on renewed coronavirus concerns

13 Nov 2020 Evaluate

The US markets ended in red on Thursday as the recent surge in coronavirus cases across the US and Europe has led to renewed concerns about the economic outlook. According to data from John Hopkins University, the US reported more than 144,000 new coronavirus cases on Wednesday, a new one-day record high. The seven-day average of new cases has skyrocketed to more than 127,400, reflecting a 35 percent spike compared with a week ago. The jump in new cases has been accompanied by notable increases in hospitalizations and deaths, suggesting the surge is not only due to increased testing. The latest wave of coronavirus cases has led to concerns about the economic impact of new restrictions and lockdowns.

On the economic data front, a report released by the Labor Department showed a bigger than expected decrease in first-time claims for US unemployment benefits in the week ended November 7th. The Labor Department said initial jobless claims fell to 709,000, a decrease of 48,000 from the previous week's revised level of 757,000. Street had expected jobless claims to dip to 735,000 from the 751,000 originally reported for the previous week. With the bigger than expected decrease, jobless claims fell to their lowest level since before lockdowns were imposed in mid-March. The report said the less volatile four-week moving average also slid to 755,250, a decrease of 33,250 from the previous week's revised average of 788,500.

Dow Jones Industrial Average fell 317.46 points or 1.08 percent to 29,080.17, Nasdaq declined 76.84 points or 0.65 percent to 11,709.59 and S&P 500 was down by 35.65 points or 1 percent 3,537.01.

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